Trans-Asia net income up sixfold to P397 million in first 9 months

by Lenie Lectura - November 12, 2015
http://www.businessmirror.com.ph/trans-asia-net-income-up-sixfold-to-p397-million-in-first-9-months/


TRANS-ASIA Oil and Energy Development Corp. (Trans-Asia) registered a net income of P397 million from January to September this year, more than five times higher than the P59-million net income it posted during the same period of the previous year.

The improved performance of the energy arm of the Phinma Group was mainly on account of higher earnings from the operation of its power plants.

South Luzon Thermal Energy Corp. (SLTEC), a 50-50 joint venture of Trans-Asia with AC Energy Holdings of the Ayala Group, for instance, registered an increase in generation revenue, which amounted to P1.02 billion for the nine-month period, a 41-percent increase in revenue from P723 million in the previous period.

SLTEC commenced operations of the first unit of its 135-megawatt (MW) coal-powered plant in April, and is currently in the commissioning stage for its second unit, poised to deliver another 135 MW to the grid by year-end.

Contributing to the significant increase in revenues was the successful operations of Trans-Asia Renewable Energy Corp. (Tarec), the company’s wholly-owned subsidiary, which commenced full operations of its 54-MW wind farm, in San Lorenzo, Guimaras, in December 2014.

“We are pleased with the outcome of our wind farm, which supplements the energy requirements of Panay, reducing the island’s reliance on power from Negros, and improving the reliability of the Visayas grid,” said Danilo L. Panes, Tarec vice president.

Tarec was the first and only project that was issued a final certificate of approval to connect to the grid by National Grid Corp. of the Philippines (NGCP), signifying Tarec San Lorenzo Wind Farm’s full compliance with the requirements for renewable-energy plants under the Grid Code.

“Tarec has already been issued its certificate of eligibility, which qualifies the project for the second round of feed-in-tariff awards from the DOE [Department of Energy],” Panes said.

In 2015 Trans-Asia also acquired three power barges with a combined capacity of 96 MW from the Power Sector Assets and Liabilities Management Corp. The barges increase the peaking-generation capacity of the company, which complements the additional baseload capacity brought about by SLTEC.

Other ongoing projects include the 12-MW expansion of the existing 20-MW geothermal plant of Maibarara Geothermal Inc. (MGI).

MGI is Trans-Asia’s joint venture with PetroEnergy Resources Corp. and PNOC Renewables Corp. The expansion is expected to be completed by early 2017.